First quarter 2026 earnings have been released and reviewed for multifamily Real Estate Investment Trusts (REITs). The quarter was defined by historically low resident turnover, strong renter financial health, decreasing concession usage, and the early stages of what the industry expects to be a multiyear recovery in rental pricing power due to declining new apartment supply.
With all those positives, the missing ingredients are an accelerating job market and better consumer confidence. Nonetheless, all the REITs entered the peak leasing season with strong occupancy and a plan to shift their focus to rental rate growth.
Here are Zonda’s seven key national rental market observations:
- New apartment supply is declining rapidly, creating a multiyear tailwind.
- Apartment demand was strong in Q1, but consumer sentiment, inflation, and slow job growth linger as headwinds.
- Record low turnover as homeownership remains out of reach for most renters.
- Renter financial health is strong with low rent-to-income ratios.
- Concessions are decreasing but it varies by market.
- REITs to shift from protecting occupancy to pushing rent growth.
- Rent control ballot measures emerge as a regulatory risk to watch.
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